| by |
R. Scott Puddy |
| Photographs by R. Scott Puddy
|
Anarchy In Long Beach?

It
was almost as if someone with an axe to grind with the FAA had scripted it: As
agency officials inside the Long Beach Convention Center discussed upheavals
within the upper ranks of the FAA, another form of anarchy reigned outside.
Instead of musical chairs and the "Washington Shuffle," a small (in
comparison to other recent protests in Seattle and Washington, D.C.) group of
May Day protesters erupted into violence unrelated to the FAA on the opening
day of the jointly sponsored AS3 — Aviation Services & Suppliers Super
Show. Some of the 125 of those protesting against the ravages of capitalism —
instead of the FAA — threw rocks and bottles at the 200 or so police officers
monitoring the event. After allowing the protesters what seemed to some
observers to be the polite opportunity to vent their frustrations, even though
they were clearly out-manned and out-gunned, the assembled police finally
decided enough was enough and fired rubber bullets and beanbags into the
crowd. After getting their undivided attention with that tactic, police placed
the vast majority of protesters under arrest and carted them away in vans.
The only real relationship the protest bore to aviation generally or the
FAA specifically was represented by a helicopter hovering few hundred feet
above the crowded downtown streets to monitor the events.
In all, the episode presented an incongruous atmosphere for the indoors
discussions relating to the enhancement of aviation safety. Not that anyone
would want to stage such a protest against the FAA, of course. Perish the
thought...
Notwithstanding
the "rocky" start, the convention was a huge success for its three
co-sponsors: the National Air Transportation Association (NATA), the
Professional Aviation Maintenance Association (PAMA), and the National
Petroleum Management Association (NPMA). Recent developments at the FAA and in
the fractional market made previously scheduled presentations even more timely
and topical and, as AVweb reported
last year, joint sponsorship of this trade show results in a much better
mix of exhibitors and attendees, plus larger crowds and enhanced opportunities
to learn more and network within the aviation industry. In all, the event is
extremely worthwhile for those in the charter, FBO, aircraft maintenance, and
fuel-supply business, with a healthy dose of business-to-business activity
thrown in.
Changes Anticipated Within The FAA
Just days after AVweb reported
that FAA Flight Standards Director Nicholas Lacey would be reassigned and
replaced by Nicholas Sabatini, FAA Assistant Director Quentin Smith led a
well-attended discussion encouragingly titled, "What's Being Done in
Washington?" During that event, Mr. Smith confirmed that Mr. Lacey was
"asked to step down" and announced ongoing discussions regarding
additional changes amongst the more senior FAA officials. What's the Chinese
proverb/curse? Oh yeah: "May you live in interesting times." As AVweb
reported, Lacey will be working on NAS Program improvements and international
safety initiatives.
During
this seminar, several operators expressed their frustrations over their
dealings with the bureaucracy — such complaints are nothing the FAA hasn't
heard before. This time, too, attendees heard pretty much the same answers:
Apologetic statements that the agency is doing the best it can in light of
budget cuts and personnel shortages. The familiar complaints ranged from a
shortage of check airmen used to keep chief pilots current to disparate
regulatory treatment between regions, particularly in the logging of
second-in-command time in aircraft certified for Part 135 single-pilot
operations.
On a more positive note, operators and regulators alike basked in the glow
of improved relations within the Dallas Flight Standards District Office (FSDO)
region. A year ago, it was reported that tensions between Dallas operators and
the Dallas FSDO had deteriorated to the point that some of the operators
wanted to move their operating certificates. Following numerous meetings in
Washington, D.C., and in Dallas coordinated by NATA and the NBAA, Gerald Shaw,
Director of Flight Operations for Million Air-Dallas, now advises that,
"Our relationship with the Dallas FSDO has become one in which our
company feels great satisfaction and the Dallas FSDO personnel have earned our
respect." With this kind of cooperation in one FSDO region, can the rest
of the country be far behind? Probably.
Fly United: A New 800-pound Gorilla?
One
of the more interesting and possibly challenging developments to
"traditional" charter and fractional ownership operators came from
none other than United Airlines (UAL), which recently announced it planned to
enter the fractional market. Thus, when United Airlines Senior Vice President
Stuart Oran appeared at the AS3 Super Show to discuss UAL's plans to enter the
fractional market, the previously scheduled session entitled "Smart Ways
to Compete with the New Players in the Charter Industry" suddenly became
a much hotter ticket.
Just as American Airlines' purchase of TWA catapulted that carrier ahead of
UAL in the race to remain the nation's biggest air carrier, UAL apparently has
decided to fight with someone their own size — the "mom-and-pop"
fractional operator. As AVweb has
also recently reported, UAL plans to launch a wholly-owned (but separately
run) subsidiary to operate some 200 bizjets under fractional ownership
arrangements. That is good news for the most well-heeled UAL customers who
found themselves stranded at O'Hare last summer. It's also good news for
aspiring pilots and maintenance technicians. For the common traveler, it
portends that those in the know realize that inconveniences and delays on
scheduled air carriers will get worse before they get better. For fractional
and charter operators, it's another reason to reach for headache medication.
Oran deserves credit and admiration for his appearance before a skeptical
(and at times openly hostile) audience to address such questions as "Will
the new venture increase the total market or divert business from the existing
operators?" (who comprised the audience) and "What are the market
assumptions that you relied upon in your business plan?" The answers Oran
offered — "...both..." and "I do not think it would be
appropriate to address that question in this forum" — were anticipated
but, nonetheless, not of great comfort to those in the industry just barely
scraping by. Perhaps the most telling question revolved around whether UAL
would venture further downstream and enter the Part 135 on-demand charter
market. While UAL has announced no such intentions, Oran acknowledged that the
carrier's next step would be to initiate a "corporate shuttle"
service and that on-demand operations were under consideration and would be a
next logical step for UAL. For embattled U.S. carriers, there must be nothing
like knowing where the low-hanging fruit is.
On a more positive note, it was suggested that UAL's venture into general
aviation might benefit at least some operators and pilots. For those who have
been waiting for the FAA to approve a GPS approach into East Podunk Airport
but haven't been able to move the FAA bureaucracy, they may find an ally in
their newest commercial co-user of the field — UAL Fractional. Few were
holding their breath, however, and "wait-and-see" attitudes were
prevalent.
User Fees, Revisited
Another
easy target for the industry — Robert Poole of the Reason Public Policy
Institute — materialized in Long Beach to present his plan to replace the
existing system of FAA-employed air traffic controllers with employees of a
new non-profit corporation funded by user fees. Representing the
opposite-spectrum National Air Traffic Controllers Association (NATCA),
Executive Vice President Ruth Marlin opposed the proposal, asking the audience
to give the FAA's recent changes in ATC operations "a chance."
Former (1977 - 1981) FAA Administrator Langhorne Bond (whose legacy could
be summed up with "a TCA over every airport") responded in support
of privatization by announcing that the FAA's ongoing program is
"doomed." Echoing the Reason Foundation line and referencing the
"successful" privatization of air traffic control in Canada and
abroad, Administrator Bond asserted that no logical basis exists for opposing
the change, since user fees would be offset by eliminating fuel taxes.
According to "Langern," the largest users of fuel (the air carriers)
will benefit the most from the change and will have no cause to complain. In
Bond's opinion, the lowly GA pilot will likewise benefit from the elimination
of fuel tax, and AOPA, in opposing the user-fee proposals, is merely inventing
and slaying dragons as a means of attracting additional members and
contributions to its PAC. Imagine: New taxes that won't cost GA operators
anything. Hey ... wanna buy a bridge?
And
AVweb Was There...
As always, AVweb was present at this year's AS3; this year, AVweb
installed an Internet Café on-site, offering subscribers and non-subscribers
alike free access to their email, to AVweb and to anything else of
lesser interest. While it's too early to say with any certainty whether AVweb
will offer its "Internet Café" again later this year at other
aviation events, we'll be there.
Enjoy the following images from AS3
2001. Click on any image to view a larger version.